As we've seen on the previous pages, several factors can cause supply curves to shift. The most common reasons for a shift in the supply curve of an individual firm are changes in production costs and changes in the market price of other goods.
The industry supply curve can shift for all the above factors and can also shift due to entry and exit of firms. Entry or exit can shift the industry supply curve even when existing individual firms don't change their behavior.
The table below summarizes the supply shifts we've discussed in this section.
| Supply Shifts | ||
|---|---|---|
| Production Costs | Rise | Supply Shifts Back |
| Production Costs | Fall | Supply Shifts Out |
| Price of Other Output | Rises | Supply Shifts Back |
| Price of Other Output | Falls | Supply Shifts Out |
| Other Firms | Enter Industry | Supply Shifts Out |
| Other Firms | Exit Industry | Supply Shifts Back |